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Unmistakably, the RMG ban has taken a heavy toll on the bottom line of homegrown gaming startups. A case in point is Nazara Technologies, which posted a loss of nearly Rs 34 crore in the quarter ending in September 2025 (Q2 FY26), marking its first-ever quarterly loss since it went public in 2021. The loss was mainly due to a one-time impairment charge of about Rs 915 crore on its investment in Moonshine Technologies, the parent company of Pokerbaazi. “Fairness and transparency are core to how WinZO designs and operates its platform. Our focus remains on protecting our users and ensuring a secure, trustworthy experience. WinZO remains fully compliant with all applicable laws,” the statement added. The company has not yet offered a detailed public rebuttal to the specific ED allegations around algorithms, global operations, and the ₹43 crore in unrefunded user balances.

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However, the law having been drafted hurriedly and being enacted without any public consultations. As a result, the practical challenges that this legislation is set to bring forth given the nuanced nature of its subject-matter continues to remain unaddressed. “Our cross-functional teams are actively exploring new opportunities and future-ready solutions… to unlock the full potential of India’s digital gaming economy,” the spokesperson added. The company further said that it will now turn its attention to identifying fresh prospects that fit within the changing legal framework. Gameskraft stated that it has settled all regulatory obligations and implemented measures to protect its employees, partners, vendors, and service providers.

Is there a gaming ban in India?

In response, the Indian Parliament enacted the Promotion and Regulation of Online Gaming Act, 2025 (the Act)1 which introduces a blanket ban on online money games and establishes a centralised regulatory authority.

“We have engaged with the industry, we have had multiple discussions with them, we have been having discussions with them for last almost three years. After passing the law, once again, we engaged with them, we also engaged with the banks and practically all stakeholders possible, and we have finalised the rules,” PTI quoted IT Minister Ashwini Vaishnaw as saying. India’s DPDP Rules introduce a new system for cross-border data transfers, replacing earlier localisation debates with a more flexible, whitelist–blacklist approach. This explainer breaks down what kinds of personal data can be sent abroad, which transfers might face restrictions, and how government agencies will rely on MLATs for cross-border access. In an attempt to recover from the RMG ban, the company has laid off scores of employees in the past few months.

Unclaimed Wealth: Will the Government’s New Drive Really Return People’s…

  • The Centre can appoint officers who can enter physical or digital spaces, such as offices, homes, websites, apps, or servers, to search or arrest people involved in illegal gaming, without needing a warrant.
  • Finally, the law empowers the Central Government to appoint a centralised regulatory authority to characterise and register online games, determine if a particular game is an online money game and respond to any complaints which it may receive across all categories of games.
  • Additionally, the sector would be governed by intermediary obligations imposed by the Information Technology Act, and tax regimes as was applicable from time to time along with guidelines released by self-regulatory bodies operating in this sector.
  • This approach will not only address current challenges but also unlock significant economic and social potential, positioning India as a leader in the global gaming market.
  • Further, these guidelines allow only ‘permissible online games’ to be hosted and offered to users in India.

A month later, Zupee pivoted to micro dramas, in-app purchases and subscriptions, with the launch of its short-form digital content platform, Zupee Studio. Amid the rising popularity of short dramas in the country, WinZO also forayed into the space. New Delhi, Nov 27 (UNI) Affirming the government’s commitment to protecting citizens’ financial rights, Delhi Chief Minister Rekha Gupta on Thursday joined union Minister of State for Finance Pankaj Chaudhary at the ‘Aapki Poonji, Aapka Adhikaar’ programme at the Dr Ambedkar International Centre. Many people become addicted, lose large amounts of money, suffer from stress, and fall victim to scams. If someone repeats the same offence (like a second or third time), the punishment becomes harsher. Offences related to offering games or processing payments are also classified as “cognizable” and “non-bailable”, meaning police can arrest without a warrant, and bail is not guaranteed.

Additionally, the Act should provide clear and accessible grievance redressal mechanisms for users and gaming platforms who may be unfairly targeted or affected by enforcement measures. This would allow individuals and companies to challenge wrongful actions, seek remedies, and hold authorities accountable. In essence, these safeguards are not just procedural formalities, they are vital to maintaining trust in the regulatory system and ensuring that enforcement is fair, transparent and constitutionally sound. The said rule, inter alia, provides that the value of supply in the case of online https://most-bett.in/ money gaming, including the supply of actionable claims involved in online money gaming, shall be the total amount paid or deposited by the user with the supplier. After discussing the classification and nature of these online gaming platforms, we now discuss their treatment under various laws. Therefore, based on the above, it can be concluded that games of chance would fall within the ambit of betting and gambling, while games of skill played with or without stakes would not.

Indian Gaming Regulatory Act Paperback – Import, 24 May 2019

By ensuring clear regulations, educating the public on gaming risks, implementing robust monitoring systems for security, and fostering collaboration among all stakeholders, India can create a thriving and sustainable gaming ecosystem. This approach will not only address current challenges but also unlock significant economic and social potential, positioning India as a leader in the global gaming market. The ED, however, noted that its investigation found WinZO operating real money games in markets such as Brazil, the United States and Germany from India using the same platform as its Indian entity. ED’s investigation found that WinZO was engaged in “criminal activities and unscrupulous practices i.e. customers were made to play with algorithms or software without being made aware of the fact that they are playing with software or algorithms and not with humans in real money games,” it said.